Japan Economics

Japan Economics Weekly

18 January, 2019

Households upbeat, but still price sensitive

Japanese households are more positive about current economic conditions than they have been for many years but they report still being highly price sensitive, and their worries about the outlook have spiked recently. All of this helps explain why, although upstream prices are rising more rapidly due to wage pressures and capacity constraints, firms are still not pushing up the prices they charge to consumers.

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